A. GST Invoice

What is e-Invoicing? What is the need for e-invoicing?

E-invoicing or electronic invoicing is a process of validating invoices electronically through the GST Network( GSTN) for further use on the common GST portal. It does not mean the generation of invoices from a central portal of the tax department
The e-invoicing mechanism only specifies the invoice standard( Schema).
At present, there are hundreds of accounting software that generate invoices but they use their own formats to store information electronically and data on such invoices can’t be understood by the GST System if reported in their respective formats. Fresh entry needs to be done every time for reporting details to the GST system as part of the Return.
Adoption of a standard will ensure interoperability of the data The most important point here is that the invoice must have mandatory parameters and must conform to the e-invoice standard( schema) published in the GST common portal.(https://www.gstn.org/e-invoice/.)

How to Report e- invoice to a central system

Invoice Registration portal( IRP) of GST will check from the Central Registry of GST system to ensure that the same invoice from the same supplier pertaining to the same financial year is not being uploaded again.
On receipt of confirmation, it will generate a unique Invoice Reference Number( IRN) and digitally sign the invoice and also generate a QR Code. Portal will return the same to the taxpayer who generated the document. The IRP will also send the signed e-invoice to the recipient of the document.
E-invoice data would be used by the GST system for the generation of e way bill( Part 1) and updating ANX-1 of the seller and ANX-2 of the buyer.
The QR code will contain viral parameters of the invoice ie GSTN of the seller, buyer invoice no., invoice date, number of line items, and HSN of major commodities. Invoice Reference

What are the Benefits of implementation of e- invoicing system

One time reporting of B2B invoice data by the supplier. It will reduce reporting in multiple formats(GSTR-1/ E-way bill ).
E-invoicing can be further used for creating e-way bills by providing only vehicle details.
Substantial reduction in input credit verification issues as same data will get reported to tax department as well to buyer.
It will facilitate automatic preparation of GST Returns(ANX 1 and ANX 2
Complete trail of B2B invoices will be available
Invoices uploaded by suppliers for authentication will be automatically shared with buyers for reconciliation.
The system will auto-match input credit liability with output tax. E-invoice can be created for Debit/Credit Notes, Invoices and other eligible documents.
E-invoice can be created for Debit/Credit Notes, Invoices and other eligible documents.

B . E-way bill

What is E-way bill? Who must generate e-way bill

EWay Bill is an Electronic Way bill for movement of goods to be generated on the eWay Bill Portal. All you need is a Portal login
A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan aggregate of all Invoices in a vehicle/ Conveyance)) without an e-way bill that is generated on ewaybillgst.gov.in

For certain specified Goods, the eway bill needs to be generated mandatorily even if the Value of the consignment of Goods is less than Rs. 50,000:

Inter-State movement of Goods by the Principal to the Job-worker by Principal/ registered Job-worker
Inter-State Transport of Handicraft goods by a dealer exempted from GST registration

Alternatively, Eway bill can also be generated or cancelled through SMS, Android App and by site-to-site integration through API. When an eway bill is generated, a unique Eway Bill Number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

Who bears the onus of preparing E-Way Bill ???

Who must prepare e way bill	When to prepare	Form
Every Registered person under GST	Before movement of goods	Form GST EWB-01
Registered person is · Consignor · Consignee (owned or hired transport) · Recipient of goods	Before movement of goods	Form GST EWB-01
Registered person is consignor or consignee and goods are handed over to transporter of goods	Before movement of goods	The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01
Transporter of goods	Before movement of goods	Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01
An unregistered person under GST and recipient is registered	Compliance to be done by Recipient as if he is the Supplier.	Part B of FORM GST EWB-01. Or Part A of FORM GST EWB-01 Depending on mode of transport

C . Input Tax Credit

Input credit means at the time of paying tax on output, you can reduce the tax you have already paid on inputs and pay the balance amount.

Here’s how-

When you buy a product/service from a registered dealer you pay taxes on the purchase. On selling, you collect the tax. You adjust the taxes paid at the time of purchase with the amount of output tax (tax on sales) and balance liability of tax (tax on sales minus tax on purchase) has to be paid to the government. This mechanism is called utilization of input tax credit.

For example- you are a manufacturer:

Tax payable on output (FINAL PRODUCT) is Rs 1000
Tax paid on input (PURCHASES) is Rs 300 c. You can claim INPUT CREDIT of Rs 300
You need to deposit Rs 700 in taxes.

What are the conditions to claim ITC?

ITC can be claimed by a person registered under GST only if he fulfills ALL the conditions as prescribed.

The dealer should be in possession of tax invoice
The said goods/services have been received
Returns have been filed.
The tax charged has been paid to the government by the supplier.
When goods are received in installments ITC can be claimed only when the last lot is received.
No ITC will be allowed if depreciation has been claimed on tax component of a capital good

How to claim ITC

All regular taxpayers must report the amount of input tax credit(ITC) in their monthly GST returns of Form GSTR-3B. The table 4 requires the summary figure of eligible ITC, Ineligible ITC and ITC reversed during the tax period. The format of the Table 4 is given below:

Eligible ITC

Details	Integrated Tax	Central Tax	State/UT Tax	Cess
1	2	3	4	5
(A) ITC Available (Whether in full or part)
(1) Import of goods
(2) Import of services
(3) Inward supplies liable to reverse charge(other than 1 & 2 above)
(4) Inward supplies from ISD
(5) All other ITC
(B) ITC Reversed
(1) As per rules 42 & 43 of CGST Rules
(2) Others
(C) Net ITC Available(A) – (B)
(D) Ineligible ITC
(1) As per section 17(5)
(2) Others